American Institute of Certified Planners (AICP) Practice Exam

One of the primary goals of economic development programs is to retain existing businesses and industry within a community. This focus is essential because established businesses contribute significantly to the local economy through job creation, stability, and investment in the community. By retaining these businesses, economic development initiatives aim to bolster job security for local residents, maintain the tax base, and encourage ongoing investment in infrastructure and services.

When businesses feel supported and valued, they are more likely to expand operations, hire additional staff, and innovate, leading to a more robust and resilient local economy. Retaining existing businesses can also often be more cost-effective than attracting new companies, as the latter may require extensive incentives or infrastructure improvements. Thus, a focus on retention aligns with sustainable economic growth objectives by leveraging the strengths of businesses that are already part of the community.